Business Education

What is a PEO Service and Does My Small Business Need One

What is a PEO Service and Does My Small Business Need One?

As a small business owner, you are constantly juggling a multitude of tasks, from managing finances and operations to overseeing marketing and sales. With so much on your plate, it can be difficult to keep up with all the administrative and HR responsibilities that come with running a business. And, this is where Professional Employer Organizations (PEOs) can step in and provide valuable support.

What is a PEO?

A PEO is a company that provides a comprehensive suite of human resource (HR) services to small and medium-sized businesses (SMBs). PEOs essentially act as an extension of your company’s HR department, handling tasks such as payroll, benefits administration, workers’ compensation, and employee relations. However, they don’t run your company. They don’t get involved in business decisions. Nor do they enter day-to-day operations – all of that remains your exclusive domain.

How Does a PEO Work?

So, when you partner with a PEO, you actually enter into a co-employment relationship. This means that the PEO becomes the legal employer of record for your employees, while you maintain control over day-to-day operations. The PEO usually assumes responsibility for all HR-related tasks, including:

Payroll processing and tax administration
Benefits administration and enrollment
Workers’ compensation insurance and claims management
HR compliance and regulatory guidance
Employee training and development
Recruitment and onboarding
Performance management
Employee relations and conflict resolution

Benefits of Using a PEO

There are numerous benefits to using a PEO, including:

Reduced administrative workload. PEOs take on the burden of HR administration, freeing up your time to focus on core business activities.
Access to expert HR resources. PEOs have a team of experienced HR professionals who can provide expert advice and guidance on a wide range of HR-related matters.
Improved compliance. PEOs ensure that your business is compliant with all federal, state, and local employment laws.
Reduced risk of HR-related lawsuits. PEOs have the expertise to handle HR issues effectively, reducing the risk of costly lawsuits.
Access to better benefits. PEOs often have access to better benefits at more affordable rates than small businesses can obtain on their own.
Streamlined onboarding and offboarding. PEOs can streamline the onboarding and offboarding process, making it easier to hire and terminate employees.

Does My Small Business Need a PEO?

Whether or not your small business needs a PEO depends on several factors, including your company’s size, growth plans, and HR needs. If your business has fewer than 50 employees and is experiencing rapid growth, a PEO can be a valuable asset. PEOs can also be beneficial for businesses that have complex HR needs or are facing HR challenges. Here are some questions to ask yourself to determine if a PEO is right for your business:

Do you have the time and resources to manage HR tasks effectively?
Are you confident in your ability to comply with all HR laws and regulations?
Are you concerned about the risk of HR-related lawsuits?
Would you like to access better benefits at more affordable rates?
Do you want to streamline the onboarding and offboarding process?

If you answered “yes” to any of these questions, then a PEO may just be a good fit for your business.

How to Choose a PEO

If you decide to use a PEO, it is important to choose a reputable and experienced provider. Here are some factors to consider when choosing a PEO:

Experience. How long has the PEO been in business?
Reputation. Does the PEO have a good reputation in the industry?
Services. What services does the PEO offer?
Costs. How much does the PEO charge for its services?
References. Can the PEO provide references from other small businesses that they have worked with?

Wrapping It All Up

PEOs can be a valuable resource for small businesses that are looking to reduce their administrative workload, improve HR compliance, and access better benefits. If you are considering using a PEO, be sure to do your research and choose a reputable provider that can meet your specific needs.

Now, do you want to grow your company in 2024 but you are not sure what is required to make that growth happen? Attend our “Planning for Growth” half-day workshop where you will get amazing details specific to your business for what’s needed from your marketing, your sales team, your production team, and your financial performance to enter 2024 with confidence you can indeed grow as planned. You will have the clarity you’ve always wanted but didn’t know how to create.

This is a $1495 value we are offering in November for only $99. Contact us for dates and times. We offer a 100% money-back guarantee if you don’t leave the workshop confident that you know what to do to grow your company in 2024.

So, go ahead and contact us by phone or email!

By phone 602-435-5474
By email: SteveM@WatersBusinessConsulting.com

Don’t wait! This is a great opportunity to propel your business forward!

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How to Build a Positive Brand

May 16, 2017 No Comments

One thing that makes companies successful is branding. We see it everywhere and all the time, from television spots, to radio ads, to catalogs and other marketing materials, businesses put out impressions of themselves to the public. The reason for branding is obvious but it’s not necessarily an easy task. It requires differentiating an entity from its competition to make it instantly recognizable to consumers. A brand has to not only be recognizable, it has to live up to its self promotion and establish a reputation that’s commensurate with its marketing. There’s practically little else which can destroy a company faster than having a bad reputation. Even the most effective branding won’t allow a company to escape bad publicity or a negative consumer image. Small business owners might not believe that branding is necessary for them precisely because of their small size; however, in a world that is digitally centered, that’s simply not the case. No matter the size of your organization, it needs a positive brand to help propel it forward. Ways to Build a Positive Brand To build a positive brand, you’ll need to think about the future–it’s what you do now that’s most important. There are defunct companies that doomed themselves by not being aware of the image they were presenting. Relying on gimmicks is another mistake. Companies that place their marketing efforts into gimmicks usually have little else to offer, and, that’s a precarious position. Being genuine and offering good service with a positive attitude are great ways to build a brand. Our personality and professional image sets the tone and stage for how we are all perceived. With the reality of a 24/7 online media world that can change things in a real-time split second, one small wrong move or right move can go viral and change everything. —Small Business Trends To keep your business growing, you have to employ more than one tactic. There are new customers to be found and try your products and services over competitors, and, it’s your brand that will help to convince them to do so. Here are a few ways to build a positive brand: Create a positive work environment. Your brand starts from within your organization. Remember, your employees have lives outside your company and talk to people about work. This is why it’s important to facilitate a positive environment. After all, people won’t give you any business if they’ve heard bad things from insiders. Have a clear and easy-to-follow customer service protocol. Your team members are one of the most powerful sales tools you have. The better they deliver, the better your company does. When it comes to customer service, everyone should know how to respond and to do so in a timely, polite manner. Offer something for nothing. People like free things, practically no matter what they are: great content that is helpful, complimentary items, discounts, and other things can have a big impact. What’s more, if you do this on a regular basis, it will create a positive impression. Make a commitment to your community. Volunteering is something every leader should do and not just for the sake of networking. When you volunteer, you send a very powerful message about yourself and your company. Another thing you can do to create a positive brand is to always follow-up with comments and reviews. Good or bad, these are helpful and the way you deal with comments and reviews will say much about your business. [shareaholic app=”follow_buttons” id=”26833294″]

Reasons Why Your Business Stays Cash Poor

May 16, 2017 No Comments

Business owners and management professionals alike know the importance of maintaining positive cash-flow. It serves as the bloodline of a company, no matter its size, or even its asset position. In fact, some businesses learn the hard lesson that too much tied-up in assets is a liability. Having to sell such leverage just to meet obligations isn’t exactly a sign of good management. Another irony is found in two of the biggest reasons business fail: too little business or too much business. It is certainly strange the latter exists, but it’s nonetheless a reality. In fact, a proprietary study conducted by U.S. Bank provides proof — 82 percent of business failures result directly from poor cash management. Even though these entities earn more than enough business to keep their doors open — a lack of proper management is far too destructive. Reasons Why Your Business Stays Cash Poor The fundamentals of cash flow aren’t complicated to understand, but rather, to execute. The movement of funds in and out of a company is what constitutes cash flow — it can be positive or negative. When money is left over after all expenses are paid, that is positive cash flow. Conversely, when outflow exceeds inflow it constitutes negative cash flow — often a death knell of businesses experiencing the same. Cash flow is one of the most critical components of success for a small or mid-sized business. Without cash profits are meaningless. Many a profitable business on paper has ended up in bankruptcy because the amount of cash coming in doesn’t compare with the amount of cash going out. Firms that don’t exercise good cash management may not be able to make the investments needed to compete, or they may have to pay more to borrow money to function. —Inc.com Many businesses struggle with keeping expenses in-check and that’s normal. It’s due to the dynamic ebb-and-flow of a free system in which goods and materials costs can rise or fall as market conditions fluctuate. However, when cash flow is continually poorly managed, it manifests itself in a number of ways. Here are some of the most common reasons why your business stays cash poor: There’s too much tied-up in inventory and materials. Glance back to the first paragraph and this demonstrates a trap into which some businesses fall. That is, acquiring assets of value which must be liquidated to meet an obligation. The entire point of acquiring business assets is to retain same, not to liquidate, especially for day-to-day operating expenses. You’re not constantly examining business-to-business expenses. One of the most common bits of consumer advice circulated is going over every one of your monthly bills one line at a time. The reason, of course, is to be vigilant and discover any unauthorized charges or find slight up-charges in normal line items. Businesses ought to do the same because it’s easy to let recurring monthly bills be paid on autopilot without any real scrutiny. Accounts receivables stay sparsely busy. This is perhaps one of the most unpleasant aspects of doing business — collecting money owed. For some companies debt collecting is left to a single person or small team. For many others it’s the responsibility of the owner. Every dollar that’s in the receivables column is one that isn’t working for your business. There’s poor cash-flow forecasting. What the probable future looks like is very important. While you probably won’t be able to forecast to the penny (even a lot more) it’s worthwhile to have a glimpse into the future, especially when cash-flow is anemic. Growth is reducing cash-flow. Here again we see irony. When a business is growing, it surely must have positive cash flow — right? Not necessarily. There are a number of tricks a company can use to ostensibly grow. Even in a healthy environment, growth can still be a drain on cash and slowing growth can actually improve cash flow assuming your margins and overhead are in line. Another dynamic which can wreak havoc on a business is out of sync credit accounts. When vendors expect to be paid but accounts receivables aren’t set to accept payments before those dates, it unnecessarily reduces a business’ cash position. Obviously, not paying vendors on-time is something to be avoided because it can cost your company in terms of creditworthiness and reputation. You might be the heart beat of your business, but cash flow is the “life blood” of a business. Please follow me on: Facebook | Twitter | Pinterest | Instagram [shareaholic app=”follow_buttons” id=”26833294″]

How Business Owners should Deal with Irresponsible Employees

June 9, 2022 No Comments

As a business owner, you are responsible for everything that goes on in your company – from the big decisions to the small tasks. This can be a daunting task, especially when you have to deal with irresponsible employees. These team members can cause serious harm to your small business, so it is important to know how to deal with them. In this article, we will discuss why irresponsible employees are harmful to small businesses and ways entrepreneurs can handle them effectively. Irresponsible Employees Pose Risks and Do Real Harm The first thing you need to understand is why irresponsible employees are harmful to your business. These team members often make poor decisions that can cost the company time and money. They may also put other employees at risk by not following safety procedures or by not completing their work properly. Irresponsible employees have a direct impact on productivity and the bottom line. Workers who shirk their responsibilities and rely on other staff to pick up the slack can also damage workforce morale. In a small business, just one irresponsible employee can create a culture of irresponsibility throughout the company, particularly if other workers see that the behavior is condoned or, worse, rewarded with promotions or plum assignments. Managers must act immediately to correct irresponsible behavior and promote responsible actions. —Houston Chronicle Small Business In some cases, irresponsible employees can even cause physical damage to company property. All of these factors can have a negative impact on your business, so it is important to deal with them quickly and efficiently. How Business Owners should Deal with Irresponsible Employees There are a few different ways you can deal with irresponsible employees. Obviously, there are some methods that are easier and more comfortable than others. Regardless, it’s necessary to course-correct bad behavior or it will only worsen and cause bigger problems. If you don’t deal with this particular situation, you’ll most definitely regret it later on at some point. The first step is to identify the problem and talk to the employee about it. It is important to be clear about what you expect from them and what the consequences will be if they do not meet your expectations. In some cases, you may need to give the employee a written warning or place them on probation. If the problem persists, you may need to consider firing the employee. But, before you dismiss an employee for good, it’s best to give him or her a real chance to make the necessary changes. Clearly set out your expectations and then let him or her come up with a game plan that will allow him or her to reach those goals. This way, it gives the individual the power to take responsibility and to control their own future. If he or she shouldn’t make real strides, it’s not your fault. Of course, it’s also advisable to help him or her along the way. If you provide the right incentives but do not accept unacceptable behavior, it’s far more likely that you’ll see substantial progress. Overall, you ought to notice a significant improvement through the evolution of your employee. Although, even such a well-planned, pragmatic strategy won’t guarantee success. Some individuals just don’t have the temperament or disposition to be a good fit for your organization. If that’s inevitably the case, it’s best for your business to let him or her go and move on. Dealing with irresponsible employees can be difficult, but it is important to do what is best for your business. These team members can cause serious harm to your company if they are not dealt with properly. By taking the time to understand the problem and by using the appropriate disciplinary measures, you can effectively handle these team members and protect your business from harm. What other suggestions do you have for dealing with an irresponsible employee? Please take a moment to share your thoughts and experiences so others can learn from your perspective. Interested in learning more about business? Then just visit Waters Business Consulting Group.